EIB Group Backs Bigbank in €253m Baltic SME Boost

Under the agreement, the EIF is providing a financial guarantee on a reference portfolio exceeding €210 million, comprising loans, credit lines and leases.

Estonia-based Bigbank AS has signed its first-ever synthetic securitisation agreement with the European Investment Bank (EIB) Group, unlocking an estimated €253.6 million in new lending for small and medium-sized enterprises (SMEs) and mid-caps across Estonia, Latvia and Lithuania over the next three years.

The transaction — involving both the European Investment Bank (EIB) and the European Investment Fund (EIF) — is designed to free up regulatory capital at Bigbank, enabling it to expand financing to businesses, with a particular focus on micro-enterprises, young companies and environmentally sustainable investments.

€210m Portfolio Backed by EIB Group Guarantee

Under the agreement, the EIF is providing a financial guarantee on a reference portfolio exceeding €210 million, comprising loans, credit lines and leases.

The structure includes:

• A €184.3 million senior tranche, guaranteed

• A €23.1 million mezzanine tranche, guaranteed

• A €2.6 million junior tranche, retained by Bigbank

The EIF’s exposure to the mezzanine tranche and part of the senior tranche is counter-guaranteed by the EIB, strengthening the risk-sharing framework.

This synthetic securitisation reduces Bigbank’s capital requirements while transferring part of the credit risk to the EIB Group — a model increasingly used across Europe to expand lending without increasing banks’ balance sheet exposure.

Catalysing Baltic Business Growth

By redeploying the capital released through the transaction, Bigbank plans to channel nearly €254 million in additional financing into the Baltic economy.

“This first synthetic securitisation transaction is an important milestone for Bigbank,” said Argo Kiltsmann, Chief Financial Officer of Bigbank.“It helps to finance small and medium-sized enterprises in all the Baltic countries with better pricing terms.”

The initiative aims to improve access to affordable credit in a region where SMEs form the backbone of economic activity but often face tighter financing conditions compared to larger EU markets.

Innovative Financial Tool for Economic Impact

Karl Nehammer, Vice-President of the EIB, said the agreement demonstrates how structured financial instruments can strengthen Europe’s real economy.

“By helping Bigbank free up capital for new lending, we are enabling thousands of Baltic SMEs and mid-caps to invest, innovate and grow,” Nehammer said. “This supports sustainable and inclusive economic development across the region.”

Marjut Falkstedt, Chief Executive of the EIF, described the transaction as a key step in expanding finance access across the Baltics.

“By sharing risk with the bank, our aim is to unlock fresh lending for businesses that form the backbone of local economies,” Falkstedt said. “The transaction channels capital in the direction of real economic and social impact.”

Focus on Micro and Green Investment

The agreement places particular emphasis on:

• Micro-enterprises and early-stage companies

• Environmentally sustainable projects

• Innovation-driven investments

Such targeting aligns with broader EU objectives to strengthen regional cohesion, support green transition financing and enhance economic resilience in smaller member states.

First for Bigbank

This marks Bigbank’s first synthetic securitisation transaction, signalling growing sophistication in Baltic banking markets and deeper integration with EU-level financial instruments.

As the EIB Group continues to deploy risk-sharing mechanisms to mobilise private-sector lending, the transaction highlights how capital markets tools can be leveraged to drive SME growth, innovation and sustainability across smaller EU economies.